Several factors contribute to the higher costs of thermal energy storage in non-China markets compared to China:
- Lack of Commercialization and Scale: Non-China markets are still in the early stages of commercializing long-duration energy storage (LDES) technologies, including thermal energy storage. This contrasts with China, which is already developing gigawatt-hour scale projects due to favorable policies and existing infrastructure.
- Competitive Landscape: China has a highly competitive energy storage market, driven by overcapacity in battery production and fierce competition among manufacturers. This competition has led to aggressive cost reductions in China, making it difficult for non-China markets to match these prices.
- Policies and Support: China’s supportive policies for renewable energy and energy storage encourage investment and innovation, lowering costs. In contrast, other countries may have less comprehensive support systems, contributing to higher costs for these technologies.
- Economies of Scale: China’s large-scale installations and production capabilities allow for better economies of scale, which reduce costs further. Non-China markets often lack the scale and uniformity in production and installation that China enjoys.
- Technological Maturity and Adoption: The maturity and widespread adoption of thermal energy storage in China have driven down costs. In contrast, these technologies are less mature and less widely adopted in non-China markets, contributing to higher costs due to fewer economies of scale and less standardization.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-factors-contribute-to-the-higher-costs-of-thermal-energy-storage-in-non-china-markets/
